Inflation in US Economy
The employment rose by 235,000 as the US economy added fewer jobs than expected. The figure was down in July, but the rising infections caused by the Delta variant created more problems. The unemployment rate fell to 5.2% in August from 5.4% in July. President Joe Biden said he was disappointed but defended his record on the economy, saying it was growing consistently. Seema Shah of Principal Global Investors called the figures “a major miss” that “screamed Delta disruption”.
According to the US Bureau of Labor Statistics, in professional and business services, transportation and warehousing, private education, and manufacturing there were notable job gains in August. However, there is a drastic drop in retail and was flat in leisure and hospitality, after an increase of 350,000 per month over the previous six months. Demand remains high, Mr. Little said “Record levels of job openings means that the demand for labor remains high”. Inflation has also jumped as the economy reopens, although the Federal Reserve believes the rise will be transitory.